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ETF Specialist

The Time Might be Right for BuyWrite

Options for profiting in an environment characterized by slow growth, tighter regulations, and lower corporate profitability.

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Even though things looked extremely grim early on, 2009 ended up being a wonderful year to be long in the markets. But, on the heels of a monumental rally that saw major market indexes bounce 70% off their lows, many investors are now beginning to question the sustainability of the market's recovery. With the market's margin of safety narrowing significantly, a healthy degree of caution seems warranted.

Indeed, this a difficult and stressful time for many investors. While recent economic data have shown signs of improvement and provided rays of hope for the bulls, there are still lingering concerns about how the market might react to a withdrawal of government stimulus. Moreover, regulatory risks cannot be ignored, particularly for the health-care, energy, and financial sectors.

John Gabriel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.